HomeMy WebLinkAbout20837 - RESOLUTIONS - 2/20/2003 RESOLUTION NO. 20837
OF THE CITY COUNCIL OF THE CITY OF PALM ,
SPRINGS, CALIFORNIA, IN SUPPORT OF
PROPOSITION 57, THE ECONOMIC RECOVERY BOND
ACT, TO BE VOTED ON IN THE MARCH 2, 2004
ELECTION,
WHEREAS, the State of California is currently suffering from a severe budget deficit due
to economic downturns and poor fiscal management over the last few years; and
WHEREAS, Governor Schwarzenegger has proposed a budget deficit reduction plan
which was unveiled on January 9, 2004; one of the key elements in Governor
Schwarzenegger's proposed budget plan is a $15 billion bond measure; and
WHEREAS, if approved, this $15 billion bond measure will provide the revenue
necessary to pay off the State's accumulated General Fund deficit as of June 30, 2004;
and
WHEREAS, failure of Proposition 57 will require the State to find other means of
increasing revenue and cutting spending to address the budget deficit; and
WHEREAS, if the State is unsuccessful in issuing a bond to finance its current deficit,
there is little doubt that severe reductions would occur to historical revenues of the City
of Palm Springs; and
WHEREAS, cities and counties have already lost substantial revenue from the State in
previous years and are slated for additional cuts included in the Governor's proposed
budget; and
WHEREAS, the issuance of the Economic Recovery Bond authorized by Proposition 57
will eliminate the need for the State to issue the $10.7 billion deficit financing bond
authorized by the Legislature, thereby reducing the State's reliance on the "triple flip"
financing from one-half cent to one-quarter cent of the cities' allocation of the Statewide
sales tax rate; and
WHEREAS, for many years, cities have been negatively impacted by the uncertainties of
the State's current budget process.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs,
California, strongly urges the Governor and Legislature to keep cities and counties whole
by finding alternative sources of financing the State's budget.
BE IT FURTHER RESOLVED, that the City Council does hereby support passage of
Proposition 57, the Economic Recovery Bond Act, on the March 2, 2004, Primary Ballot
to further reduce the State's reliance on local revenues.
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Resolution 20837
Page 2
ADOPTED this 20`h day of February, 2004.
AYES: Members Foat, McCulloch, Mills, Pougnet and Mayor Oden
NOES: None
ABSENT: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
Ci erk City Manag
REVIEWED & APPROVED AS TO FORM